While our market analysis typically focuses on U.S. coins, it’s been
hard to avoid noticing advertisements from the Royal Canadian Mint
offering 1912, 1913 and 1914 $5 and $10 coins from the Bank of Canada hoard.
The Bank of Canada had held approximately 245,000 King George V gold
$5 and $10 coins dated 1912, 1913 or 1914 in the Exchange Fund Account
controlled by the minister of Finance. Of those, 30,000 were selected
for sale to collectors in two groups: “Premium Hand-Selected” and “Hand-Selected.”
The RCM announced on Nov. 28, 2012, that it would offer the coins
for sale directly to collectors. These pieces represent Canada’s first
gold coins carrying a Canadian symbol. Their production was cut short
in 1914, just two years after the coins were introduced.
Canada’s sale is reminiscent of the General Services
Administration’s 1970s offerings of primarily Morgan silver dollars
from Treasury Department vaults. These dollars have since enjoyed a
robust market with collectors.
In Canada’s sale, the gold $5 coins of all three years have long
sold out, offered at $500 Canadian for “Hand-Selected” and $875 for
“Premium Hand-Selected” coins. As of July 26, just four ordering
options remain: 1913 and 1914 gold $10 coins priced at $1,000 for
“Hand-Selected” and $1,750 for “Premium Hand-Selected.”
Despite the price of gold falling substantially, from the $1,700
U.S. an ounce level in early December 2012 to $1,320 on July 26, the
RCM has not changed its prices.
These coins have enjoyed a solid resale market, with major marketers
continuing to sell examples at premiums over the RCM’s offering price.
Collectors report that “Hand-Selected” pieces are grading Mint State
62+ to MS-63+ while the “Premium” pieces are grading MS-63+ to MS-64,
with the very occasional MS-65 piece.
Mint State 63 1913 $10 coins from the hoard continue to sell in
online auctions at $1,100 U.S. and through dealers at the $1,200
level. MS-62+ examples are selling at the $975 level online, or the
U.S. dollar equivalent of the RCM’s $1,000 Canadian issue price.
Mint State 64 examples are selling at auction at the $1,550 U.S.
level and through dealers at the $1,750 level. It seems that the
additional quantity of coins in the marketplace has not overwhelmed
the market. The future looks bright for these historic coins. ■